EXECUTIVE SUMMARY

Behaviour of an individual investor in stock market in India have created

impressive signs , as they belong to different occupations an income levels i.e.
from upper class to middle class income group. Nowadays even women are
interested in stock markets. Some of them have knowledge of stocks. Most
financial theories are based on the idea that everyone takes careful account of all
the available information before making investment decisions. But there is
much evidence that this is not the case.
Behavioural finance, a study of the markets that draws on psychology, is
throwing light on why they do not buy stocks at all. This research on investors
behaviour helps to explain the various market anomalies that challenge
standard theory. It is emerging from the academic world and beginning to be
used in money market.
Therefore our study is to find out the behaviour of individual investor and the
factors influencing their investment decision.
Savings forms an important part of the economy of any nation. With the savings
invested in various options available to the people, the money acts as the driver
for the growth of the country. The Indian financial scene to present investors
avenues. Though certainly not the best or the deepest market in the world. , it
has reasonable option for an ordinary man to invest his savings.
One needs to invest and earn return on their idle resources and generate a
specified amount of money for a specific goal in life and make provision for
uncertain future one of the important reasons why one need s to invest wisely is
to meet the cost of inflation. Inflation is the rate at which cost of living
increases. The cost of living is simply what it cost to buy the goods and services
you need to live. inflation cause need to lose value because it will not buy the
same amount of goods or service in future as it does now or did in past . The
sooner one starts investing is the better. By early investments you allow them
more time to grow, whereby the concept of compounding increases your
income, by accumulating the principle and the interest or dividend earned on it
year by year.













Three golden rules for investors:
Invest early
Invest regularly
Invest for long term and not for short term.

Various investment avenues available in India:

Safe/low risk avenues:
Savings account
Bank fixed deposits
Public provident fund
National savings certificate
Post office savings
Government securities

Moderate risk avenues:
Mutual funds
Life insurance
Debentures
Bonds

High risk avenues:
Equity share market
Commodity market
FOREX market

Traditional avenues:
Real estate (property)
Gold/silver
Chit fund

Emerging avenues:
Virtual real estate
Hedge funds and private equity investment
Art and passion